When a firm is operating in a price-taker market, marginal revenue will always equal
A) average total cost.
B) one minus the elasticity of the market demand curve.
C) total revenue.
D) price.

Question

Quizplus · Accepted Answer

In a price-taker market, firms are price takers, meaning they sell their products at the market price. Therefore, marginal revenue, which is the additional revenue from selling one more unit, equals the market price.

When a Firm Is Operating in a Price-Taker Market, Marginal